While taking out insurance is a necessity for most South Africans in this
ever-changing and often volatile country and world in which we live, navigating
and understanding the various insurance products offered by the multitude of
insurance companies specialising in many different areas of insurance, can more
than often be confusing.
Insurance policies, ranging from car and household insurance to health and life
insurance, are often shrouded in confusing fine print, terms and conditions, and
hard-to-understand insurance jargon that can make it difficult for the average
person to make head or tail of them, and lead to costly misunderstandings down
This is where insurance brokers or agents come in. They are the people
who make their living from selling and promoting a wide range of insurance
products and services to consumers and businesses alike on behalf of the various
insurance firms, in return for commissions paid by the firms based on the number
and size of the insurance policies sold.
Insurance brokers can work independently or for firms housing a number of
insurance brokers. These firms are more commonly known as insurance brokerages
and usually pick a few select insurance companies whose products they promote
and sell to their clients.
Provided they are any good at what they do, insurance brokers learn all they can
about the insurance companies and their products and services in terms of
insurance policy documents, pay outs, exclusions, fine print, terms and
conditions and so forth.
The benefit is that once they have identified the precise insurance requirements
of their clients, they can advise them accordingly as to the best and most
effective insurance companies and policies suited to their particular insurance
needs. They can also take on the responsibility of being able to explain clearly
and concisely in jargon-free, easy-to-understand language exactly what their
clients' insurance policies cover and what the fine print entails.
However, in recent years more and more insurance companies are emerging in South
Africa that encourage consumers and businesses alike to contact and deal with
them directly and, in doing so, bypass the 'middlemen' or the insurance broker.
While in the short term going 'direct' may save consumers a few Rand here and
there in terms of their monthly insurance premiums, in the long term in the
event of a client having to make a claim, they will not have the luxury of an
insurance broker to fall back on and translate the insurance jargon and fine
print that the insurance company will be reciting, often causing clients a lot
of confusion and panic resulting in stress and an unpleasant experience.
This is where insurance brokers are very good as acting as 'buffers' between the
insurance companies and the policyholders, which can create a comfortable win
win situation for all parties.
For instance, policyholders are happy because they can rely on their insurance
broker for good advice, service and attention, allowing them to rest assured in
the knowledge that their insurance requirements are being comprehensively met
and dealt with.
Insurance companies are happy because they are selling insurance policies and
are not having to deal with 'the man on the street' but with a knowledgeable
insurance broker network that understands their products as well as they do.
Finally, the insurance brokers themselves are happy because they can retain
their existing clients and sign up new clients thanks to their insurance
industry and product knowledge, and are also well-compensated by the insurance
companies for their efforts.
South African Insurance Brokers
Finance In Motion
|South Africans love the outdoors. With this come the need for insurance products that insure the items used in outdoor endevours. Finance In Motion provides short term insurance for most outdoor items such as quad bikes, watercraft and 4x4 vehicles.|
|2017/06/23 08:54:32 AM|